#HDBNews

[iamwilliamkoh]

Latest HDB news and how it will affect you! Call me to find out more! #williamkoh #yourtrustedassetplanner #hdbnews #ecnews #highergrants #newec #realtor #singaporerealtor #buyingnewec (at Singapore) https://www.instagram.com/p/B2TkocpHx4S/?igshid=1396v9ordwrrc

[homeguidedesignsg]

What does it take to carry out the perfect HDB apartment renovation in Singapore? That’s a challenging question with several possible answers. The selection of the right Singapore interior design team? The selection of the right materials? Having a clear vision?

All of these happen to be incredibly important for complete satisfaction with the final outcome but there’s another essential that happens to be a bit more practical.

In order to renovate your HDB apartment, you need to obtain all of the required permits and you have to follow the guidelines formulated by the Housing and Development Board.

These guidelines affect just about every aspect of the renovation – from windows, to plumbing and electrical work, HVAC installations and wall demolition.

Over the years, the HDB has been criticised numerous times for maintaining the rigidity of these guidelines. Are the legal requirements way too strenuous? Is there any chance of change and the introduction of some more leniency in the future?

The Current HDB Renovation Guidelines

The HDB renovation guidelines have been put together to maintain the structural integrity and overall visual cohesiveness of the building. You have a lot of freedom when it comes to interior decorative work like choosing the right paints and textures. Other aspects of the renovation, however, cannot be carried out in any way you deem appropriate.

You’re not allowed to overload the building structure through the addition of heavy stone flooring or a massive bathtub, for example. You also have to check the building plan to determine which walls can be modified or demolished and which ones have to remain as they are.

In addition, you can’t demolish columns or structural beams – these are also needed to maintain the integrity of the entire construction.

The HDB also regulates the raising of floors inside flats, building façade modifications and extensions into void areas.

Other kinds of renovation work are permissible only if you obtain a permit before getting started.

If you don’t know what kinds of permits will be required for your renovation, talk to an HDB-licensed Singapore home interior design company. Interior design professionals know how the Housing and Development Board approaches extensive renovation and which ones necessitate preliminary approval.

Generally, you will need a permit for wall demolition (when it comes to internal, non-structural walls), floor replacement, bathroom expansion and changing of the floor level. You can also reposition internal doors and install water-based features after you get an HDB permit.

Keep in mind that for brand new HDB flats, you will have to observe a waiting period before getting started with more extensive renovations.

Currently, the waiting period is three years for modifications to the bathroom. This period is set to ensure waterproofing and prevent water leaks immediately after the building has been completed and in the first years after residents move in.

In essence, these re the major aspects of the home renovation that the HDB controls. As you see, the list is quite extensive and it has resulted in massive criticism from both home owners and renovation professionals.

Way Too Strict: Will Guidelines Change in the Future?

Numerous experts in the field of residential renovations have publicly spoken about the excessively restrictive nature of the Housing and Development Board guidelines.

Renovation guidelines are especially unfavourable when it comes to the elderly and to people living with disabilities, reports suggest. The cost of modifying HDB flats to meet their needs is quite high. In addition, modifications introduced to ensure accessibility have to be reverted before the flat is returned to the HDB. This means that the owner will have to pay twice for work to be done on the property.

HDB flats come with a more or less generic layout. There’s a reason why these apartments cost less than privately-sold properties. The restrictions are a part of a package deal right now and it’s important for potential owners to know what they’re getting themselves into before purchasing.

When an experienced interior designer is involved in the project, it’s possible to carry out a complete overhaul without having to violate the HDB guidelines.

A touch of colour and a minimalist storage solution can transform small living spaces and give them a fresh vibe. Awkwardly-positioned niches don’t have to be filled in. There’s also no need to hack walls for the purpose of changing room shape. Accent colours can create a nice visual illusion to create a point of interest and maximise the value of the available space.

You can go around the requirement of the HDB to personalise the flat and make it your own. The big question, however, remains. Is there any chance for change in the future, giving HDB flat owners a bit more freedom?

It’s easy to see why the structural integrity and the building façade regulations are in place. What professionals hope for is a streamlined process that reduces the amount of time required to get renovation permits. An easier and faster procedure will make it much easier for new home owners to customise their living space and move in as soon as possible.

Choosing the Right Interior Design Team Matters

It’s very important to hire an experienced HDB interior designer, especially if you have very specific or niche requirements for the modification of the flat.

Home Guide has been working on HDB renovations for years and we’ve executed numerous residential interior design and renovation projects on behalf of our clients. We know what the Housing and Development Board allows and we know what’s completely unacceptable when it comes to modifying the interior of the property.

We will work hard to understand your preferences and offer modifications that are in line with your needs and that also meet the HDB guidelines.

Contact us today if you have questions about the HDB guidelines and the permits you’ll require to get started with the renovation work. We’ll be more than happy to guide you through the process and to suggest renovation ideas that will bring your vision to reality.

[phungthaihy]

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[homeguidedesignsg]

Imagine getting an HDB flat that features condominium-like features without being overly expensive. This would be possible from now on, HDB announced.

On June 6, 2019, HDB reported that sleeker and more streamlined fittings will be available in built-to order (BTO) projects that are launched starting February 2019. Here’s the scoop on this major upgrade.

What Will New HDB Flats Feature?

Contemporary Singapore home interior design trends will be followed when it comes to the fittings and the décor of the new BTO flats. These will make the apartments much more reminiscent of condominiums than of traditional HDB housing.

New Housing Board flats will come with interior design upgrades like modern fittings, larger tiles, clean bathroom designs, thumb-turn knobs, streamlined door and window designs and various other staples. All of these will not have an effect on the pricing of the BTO apartments, an HDB spokesperson announced.

As per a statement by HDB deputy director Jansen Foo, the increase in cost for the installation of these new fittings is negligible. This is the main reason why Singaporeans will get to enjoy modernity in their HDB flats without having to break the bank on the acquisition.

Open-plan layouts will also be common among the new BTO flats.

To accomplish this goal and feature a condo-like interior, HDB went ahead to push both structural walls and supporting beams to the side. This way, the BTO flats feature much more unobstructed space that creates a sense of minimalism and airiness.

According to the HDB, changes were required due to the new demographic profiles of people acquiring BTO flats. New lifestyle trends also necessitate changes in the home interior design choices that have been made in HDB housing projects so far.

The Upgrades Keep on Coming!

While the HDB interior design changes mentioned above are some of the main ways in which BTO flats will be reminiscent of condos, these aren’t the only modifications potential buyers can anticipate.

Wear-resistant and glazed porcelain tiles will be used in the bathrooms and kitchens of the new BTO projects. These will come to replace the traditionally used ceramic tiles.

According to the official BTO announcement, the tiles will also be larger – a very prominent trend in contemporary Singapore residential interior design.

Scratch-resistant timber doors, innovative keyless gates and water-efficient fixtures in the bathroom will also be provided without a change in the cost of BTO apartments.

Obviously, people are excited about the new features that will become the standard in the realm of HDB housing. Some, however, have criticised the HDB because they’ve been left out of the new trend. Many Singaporeans took to social media to express their discontent.

People who have booked flats in earlier launches will not benefit from the upgrades. Hence, there have been calls for backdating the innovations in the BTO projects. People who already bought a BTO flat are inquiring whether such upgrades could be introduced in their properties without incurring additional charges.

It’s obvious that the HDB cannot please everyone and some will be left out of the trend. An official statement about eventual back-dating of the upgrades hasn’t been made as of yet.

A More Contemporary Appearance

Most of the changes mentioned above have been introduced on the basis of feedback that HDB received from flat owners.

The new flats are anticipated to be much more functional, spacious and aesthetically-pleasing. Changes in the doors and the windows are also expected to give tenants a higher degree of privacy than ever before.

According to a few potential buyers interviewed by The Straits Times, the new BTO flat fittings will benefit everyone, regardless of their taste and preference. For a start, people will have to spend less on home renovations and achieving a contemporary, condo-inspired look.

In addition, the new fittings and interior design upgrades are at least partially aimed at ensuring the longevity of the décor. Wear-resistant and scratch-resistant solutions will remain in a good condition for a much longer period of time, additionally reducing the need to spend money on future upgrades.

For many first-time buyers, the price of the property is one of the main concerns. In fact, Singaporeans may be discouraged from home ownership by the cost of acquiring and upgrading their HDB flat. Hence, the modern home fittings and interior design solutions could simplify the process for at least some of the financially-challenged individuals out there looking to get a new flat.

Keep in mind that financial reports suggest the average cost of BTO renovation is 44,000 dollars. While this sum also includes the cost of furniture (since many first-time buyers do not have furniture from another apartment that they can take to the new location), it’s still a massive sum.

Luckily, some of the financial burden will be reduced and even eliminated completely through the upgrades announced in the new BTO projects.

Getting Closer to Your Dream Home?

Having condo-like features in a BTO flat is a very positive and much needed change.

Still, building the home of your dreams could necessitate some additional work and a few modifications.

It’s possible to get to where you want to be without spending a massive sum on changing and improving your newly acquired HDB flat.

Singapore interior design companies that are focused on the provision of a high quality service should take the client’s budget in consideration.

At Home Guide, we work hard to offer the best possible solution for everybody’s needs.

Even if you have a small amount to dedicate to the improvement of your brand new BTO flat, it’s still possible to get the contemporary feel and the sophisticated décor that will make you feel perfectly content with your living space.

Get in touch with Home Guide today to begin building the perfect apartment. You can also explore our residential portfolio to get a better idea of our style and the types of work we’re qualified to do.

[homeguidedesignsg]

In July 2018, cooling measures were introduced to bring residential property prices in Singapore under control. Have these measures been effective? Should a price reduction be anticipated in the near future? Here’s what residential property experts have to say.

A History of Measures

The property cooling measures of 2018 aren’t the first in the history of Singapore.

In 2013, the Total Debt Servicing Ratio (TDSR) was introduced.

The aim of the TDSR was to encourage more financially-responsible decisions among borrowers. It limited monthly mortgage payments to no more than 60 per cent of one’s income. In this way, the government also limited the total amount a person could borrow for the purpose of acquiring property.

TDSR proved to be an effective approach. Total sales of non-landed residential properties went down 44 per cent and the private property index was reduced by nearly 3.5 per cent in 2014.

These measures had a temporary effect, however. The market started picking up speed once again in 2017. This new dynamic contributed to the introduction of an additional set of cool down measures in the summer of 2018.

On July 6, 2018, two major changes became effective. Additional Buyer’s Stamp Duty (ABDS) increased and the loan-to-value (LTV) limit went down. To explain these two changes in simple terms, those who want to buy a property have to pay higher taxes than before and they also have a limit on the amount of money that can be borrowed to finance the purchase.

ABDS increased from the previous seven per cent to 12 per cent. For third-time and subsequent home buyers, the increase was from 10 to 15 per cent. The good news is that the ABDS of zero per cent for first-time home buyers has remained in full effect.

The LTV limit affects the size of the property loan one can take out to finance their purchase. Prior to July 2018, the LTV limit was 80 per cent for first-time buyers. It was reduced to 75 per cent and the remaining cash down payment was increased from 15 to 20 per cent.

New Measures – How Effective?

The theory behind the introduction of these measures is easy to understand. Limited financing and higher taxes will decrease the number of buyers. When the demand goes down, prices will logically follow on the basis of market principles.

According to real estate experts, however, prices will remain stable, regardless of the restrictions introduced in 2018.

A report published by Channel News Asia suggests that developers will be more willing to maintain the current prices and settle for a lower sell-down rate instead of discounting. The reason for this approach towards sales is simple – discounted price rates devalue the whole project and they could contribute to discontent among previous buyers who have already paid the full price to acquire their property.

Most of the large projects are launched in stages. Usually, discounts are offered to those who acquire properties first, after which prices gradually start going up.

Despite the large supply of properties anticipated over the course of 2019 (over 20,000 units will be launched), developers will work to do more competitive positioning instead of turning to price reductions. Higher sales commissions could potentially be offered, deferred payment agreements and other preferential treatments will be introduced to incentivise everyone involved in the sale and to maintain price stability.

The Wealthy Singaporean Effect

Real estate professionals have noted another market factor that has contributed to the ineffectiveness of the cool down measures.

Incomes in Singapore have been going up. As a result, more families are capable of affording their properties.

More than 178,000 Singaporean households earned over 20,000 dollars per month in the end of 2018. The stronger financial position of such households stimulates an interest in private residential units that are pursued either as a long-term occupation choice or as an investment opportunity.

Wealthy foreigners have also eyed the Singapore residential market – another key factor that ensures price stability.

The interest is most pronounced in the case of high-end, luxury residences. These properties, especially when located in a central development, are considered a lucrative investment choice.

In 2018, the number of properties sold in the four-million-dollar range or even higher increased nearly 30 per cent on an annual basis. The foreign interest is one of the contributing factors. While foreign buyers currently account for solely five to six per cent in the Singaporean residential real estate deals, the latent demand is high and could result in an increased transactional volume in the long-run.

Some Residential Property Sectors Will Be Affected

The Business Times reported that home prices will go up five per cent, regardless of the cool down measures introduced in 2018. A healthy demand and constantly improving supply will contribute to buyers getting what they want and completing a significant number of deals, thus ensuring market stability.

The steep competition and the availability of so many new residential housing options in 2019 will undoubtedly impact some sectors of the residential property market.

A reduction in prices could be anticipated in the case of older resale flats due to the stiff competition from new projects and developments.

The 2018 cool off measures also impacted the en bloc market. Only two en bloc deals worth 353 billion dollars were completed during the third quarter of 2018. This was the first quarter during which experts registered an en bloc reduction after six consecutive periods of increase.

Following the cooling measures, the price gap between private properties and HDB resales was majorly widened. The private property price index picked up while the HDB Resale Price Index (RPI) has registered decline for some time already. As new and new BTO flats continue being launched, the decline could become even more pronounced.

One final factor will also have to be accounted for. 2019 is going to be an election year for Singapore. Hence, the government is anticipated to address the condition of the residential property market and the effects of the cooling measures before a governmental and administrative change takes place.

[homeguidedesignsg]

May 2019 is an important month in the Singapore Housing and Development Board (HDB) calendar. HDB launched the sale of new flats in various projects. Apart from sharing more details on the sale, the HDB has also provided information about the current condition of the resale market.

3,400 BTO Properties Became Available in May 2019

During the month of May, HDB will be offering approximately 3,400 built-to-order (BTO) flats in various properties – Tengah, Kallang Whampoa and Woodland.

As per an official HDB announcement published on the board’s website, there will also be a concurrent sale of balance flats exercise. Together, the BTO and the sale of balance offerings consist of 6,753 flats.

The BTO offering consists of various types of flats to meet the diverse needs of Singapore residents. These range from two-room Flexi to five-room flats. A selection of two-room flats in Kempas Residence is made available solely to seniors aged 55 or higher. These are apartments on short leases ranging from 15 to 45 years that address the specific needs of the targeted demographic group.

The SBF offering will consist of 3,268 flats ranging from two-room Flexi to five-room and 3Gen units. Most of these flats are reserved for first-time applicants, whether families or single individuals.

SBF flats are available in both mature and non-mature properties. The location, the size and the condition of the flat are both determining for its price. A three-room flat in a non-mature location averages a price of 144,000 dollars while the same type of flat in a mature town has an average price of 123,000 dollars.

Subsidies Are Also Available

The new HDB flats come with a generous subsidy that takes into account key factors like the location of the property, its size, market conditions, specific flat attributes, etc.

Compared to the prices of the resale flats in the same vicinities, the prices of the new HDB BTO flats are considerably lower.

First-time property owners who meet the HDB conditions can receive a housing grant of up to 80,000 dollars. These are provided in the form of an Additional CPF Housing Grant that can reach up to 40,000 dollars and a Special CPF Housing Grant that can also reach up to 40,000 dollars.

Depending on the size of the flat and the amenities, those qualifying for the grant will end up paying very little for ownership. The amount that potential owners will end up taking out of their pocket is going to range from 6,000 dollars for a two-room Flexi apartment to 184,000 dollars for a four-room flat or 331,000 dollars for a five-room flat.

The financial details and the sum that first-time owners can save through a grant can be found on the official HDB website in the following announcement.

Better, Faster and Simpler Processes

Since the beginning of 2019, HDB has also announced simplified, faster and much more streamlined procedures for residential property applicants.

Advances in terms of reducing the balloting time for BTO flats have already been made.

Starting from the May 2019 sale exercise, new balloting terms and conditions come into effect. These involve a reduction in the waiting time from the previous six weeks to three weeks.

This sales exercise will produce one additional change that pertains to accessing Step-Up CPF Housing Grants.

Previously, such grants for lower-income families allowed for the provision of 15,000 dollars to those living in subsidised two-room flats in non-mature towns. As of May 2019, second-timer families living in public rental flats also become eligible for the Step-Up CPF Housing Grants. The only condition is for such families to apply for two or three-room resale flats in non-mature properties.

Grants are also available under the SBF programme. Those who qualify for a grant and would want to acquire a two-room Flexi flat will have to pay as little as 5,000 dollars. The additional payment is highest for 3Gen properties (351,00 dollars) and executive properties (475,000 dollars).

The HDB Resale and Rental Markets

HDB provided a quick update of the condition of the resale market in May 2019.

The resale price index (RPI) decreased by 0.3 per cent to reach 131.0 in the first quarter of 2019 as compared to an RPI of 131.4 in the last quarter of 2018.

The volume of resale transactions has also gone down. It decreased 14.2 per cent from 5,637 transactions in the final quarter of 2018 to 4,835 transactions in the first quarter of 2019. In comparison to data for the first quarter of 2018, however, the transactions for the first quarter of 2019 were 8.5 per cent higher.

Median resale price varies from one property to another. The most expensive four-room flats, for example, are located in Queenstown. There, the average is 720,000 dollars. The priciest five-room flats are located in Toa Payoh where the average is 818,000 dollars.

As far as the rental market goes, approved applications for renting out HDB flats went up 2.6 per cent from 11,479 approved applications in the final quarter of 2018 to 11,755 approved applications over the first three months of 2019.

Approved applications are almost unchanged on an annual basis – a decrease of 0.5 per cent in comparison to data for the first quarter of 2018. There were 57,764 HDB rented out flats in the period ending on March 31, 2019. This number is 1.8 per cent higher in comparison to data for the first quarter of 2018.

Median rents are quite diversified, depending on the size of the property and its location. The average for two-room flats is in the 1,400 to 1,600 dollars. The priciest rentals for three-room flats are available in the Central location (2,150 dollars) while the most affordable rentals are available in Woodlands (1,400 dollars).

Four-room flat rentals come in the range from 1,700 dollars in Choa Chu Kang to 2,700 in the Central town. For five-room flat rentals, the price range is from 1,800 dollars in Choa Chu Kang and Woodlands to 2,800 dollars in Bukit Merah and Queenstown.

Start Planning Now

With these new launches being announced, you might have your eye on some. It will be good to start planning your financials, planning for your new home interior design and renovation and of course, to start looking for an interior design company who can work with you to make your dream home a reality!

[homeguidedesignsg]

The Singapore Housing and Development Board (HDB) made a few important announcements about the future of mortgage rates and housing accessibility in the period from July 1, 2019 to September 30, 2019.

HDB mortgage loans currently have a concessionary interest rate pegged at 0.1 per cent above the ordinary account (OA) interest rates. The mortgage interests will remain unchanged and set at 2.6 per cent per year in the period ending on September 30, 2019.

How HDB Mortgage Rates Are Calculated

The OA interest rate is modified on a quarterly basis. OA money will earn either the legislated minimum interest rate of 2.5 per cent annually or the three-month average of major local bank interest rates (the higher percentage is the one that will count).

Once the OA interest rate is set, mortgage percentages can also be established accurately.

The average bank interest rates in the period from February to April 2019 were 0.6 per cent. Since this is lower than the legislated minimum rate, the OA interest for July and the period onward was set at 2.50 per cent – the minimum mandated by law.

Based on this calculation, the HDB mortgage rate is determined to be 2.60 per cent per year.

This is the third consecutive quarter during which Singapore mortgage rates have remained unchanged.

HDB provides a more detailed account of how the calculation is made here.

New Home Loan Usage Rules

Shortly before announcing the new mortgage interest rates, HDB also provided information about new rules pertaining to the usage of COF and HDB housing loans. The new rules will put emphasis on whether the remaining lease of the property can cover the potential buyer until they reach the age of 95.

On May 9, 2019, the Singaporean Ministry of National Development and Ministry of Manpower made a joint announcement about these changes that will apply to the purchase of HDB flats, executive condos and private properties.

Current rules state that the amount of CPF a potential buyer intends to use is directly related to the remaining lease on the property. Whenever at least 60 years remain on the lease, the buyer can use the maximum CPF allowed by law to finance the purchase.

Whenever the remainder on the lease fell under the 60-year mark, the buyer was still eligible to use CPF whenever his age and the lease years added up to at least 80.

The change will now have a pronounced effect on younger buyers. They will need to do the math of whether the remaining lease can cover them until they turn 95. Whenever the condition is met, CPF will be available to pay for the flat up to the valuation limit. Whenever the condition isn’t met, the use of CPF will be pro-rated.

For leases that have 20 years remaining or them or lower, CPF will not be available to finance the property purchase. This requirement is lower than the previous one for 30 years remaining on the lease.

Finally, when a CPF member turns 55, they will need to have a property with a remaining lease that covers them until the age of 95 in order to be allowed to withdraw CPF savings into a Basic Retirement Sum.

The use of HDB public housing loans will also be subjected to new terms and conditions.

Whenever the remaining lease on the property can cover the new owner until they reach the age of 95, an HDB housing loan will be available at a loan to value limit (LTV) of 90 per cent. If the condition cannot be met, the LTV limit of up to 90 per cent will be pro-rated on the basis of the extent that the remaining lease can cover the buyer up to the age of 95.

These conditions will now be valid even for HDB properties that have less than 60 years left on the lease.

According to HDB representatives and ministry professionals, these changes are required to account for a longer life expectancy in Singapore. Through the changes, buyers are supposed to enjoy more flexibility when buying a new home and a higher level of protection/security during their senior years.

Effects of the New Rules

Most homebuyers who are looking to finance a property purchase through a mortgage loan will not be affected by the new rules (and the interest rates also remain unchanged).

Young couples and people in their 20s are the ones who may experience limited availability of flats because of the number of years remaining on the lease.

Under the old rules, however, the number of people who couldn’t use their CPF or an HDB loan to finance a property purchase was much higher. Everyone was limited to the selection of property that had at least 60 years left on the lease, which narrowed down the opportunities.

As per the HDB announcement, those who have completed a purchase and individuals who have signed an Option to Purchase (OTP) agreement prior to May 10, 2019 will continue accessing HDB and CPF funds on the basis of the old rules.

Individuals who haven’t finalised the property purchase within the specified timeframe and are concerned about the availability of financing can approach HDB or the CPF board for clarifications and additional assistance.

CPF Interest Rates Also Announced

Apart from providing clear information about mortgage interest rates moving forward, the HDB announcement also discussed CPF percentages.

Central Provident Fund (CPF) members will continue earning an interest rate of 3.5 per cent per year on their OA money. In addition, they will earn up to five per cent annually on Special and MediSave accounts.

Retirement account interest rates will remain fixed at a four per cent rate in the period ending on December 31, 2019.

CPF members can get additional information about their account and its condition at the CPF official website (cpf.gov.sg) or by calling 1800-227-1188.

[homeguidedesignsg]

Singapore’s first smart-enabled public housing estate will reach its completion phase in 2020, an announcement in The Straits Time reads.

Punggol Northshore Residences will feature 1,400 housing units that will be ready to be occupied during the next year. All of these units will be equipped with the innovations required to have a smart home – high-tech distribution boards, smart power sockets and others.

The Housing and Development Board (HDB) made its first announcement about the characteristics of the residential property and the available smart infrastructure in the end of April, 2019

Smart Infrastructure for a Better Life

As per the HDB announcement, the smart infrastructure that’s already in place will allow for online connectivity of key appliances and devices in the flat.

From the coffee maker to the air conditioning unit, the owner will have the power to control nearly all aspects of living through a mobile app. This development is in line with forecasts for future trends. Smart innovations and technologies will potentially become standard in the future, allowing owners and residents to modify their living environment remotely.

Punggol Northshore Residences will feature a number of essential smart innovations.

Smart fans on ceilings in the community spaces will be activated whenever the temperature in the building rises above a certain threshold. Human traffic will be determining for the speed of the fans turning to reduce excessive use of electricity.

Smart lights will also be available in common areas. Once again, illumination will be provided on the basis of human traffic to eliminate waste altogether whenever a certain part of the property is empty.

There are several other cool features like smart pneumatic waste conveyance system (the level of waste will be monitored through the use of sensors to ensure adequate recycling and disposal), a smart automobile parking (sensors will once again be used to get a better idea about the parking demands of residents) and smart irrigation for the green areas in front of the building.

Greener, More Sustainable and Innovative HDB Estates

The announcement of the first smart-enabled public housing option in Singapore is in line with HDB properties to ensure greener and more sustainable living.

HDB first announced in 2018 that most new residential projects will come with either smart or green living features to encourage sustainability and to reduce utility expenditure. Designs derived from the concept of biophilia have been adopted ever since 2013. The aim of these residential designs was to enhance existing national resources and to ensure rational usage.

The Punggol Northshore District was one of the first to feature such green and sustainable features.

Upon the initial introduction of biophilic designs, HDB carried out extensive research in partnership with the Urban Redevelopment Authority, the National Parks Board and the National University of Singapore. Based on three years of analysis, further improvements were made to the concept.

Previously, in 2017, HDB announced that all future housing blocks with at least 400 square metres of roof space will be designed with solar-friendly installations. Once again, this is the infrastructure required for the placement and the functioning of solar panels for clean energy production.

Solar-ready roofs were first featured and tested out on Punggol Edge BTO projects in 2012. The construction of these solar-ready roofs was finalised in 2016. The implementation was completely successful, which prompted the HDB to increase the scope of the project and to seek for additional green, innovative and smart living installations in public housing projects.

The hardware and infrastructure-based approach reduces the amount of time needed to put together a system and to get it running. The associated costs are also brought down, making it easier for a wider range of residential property owners in Singapore to experiment with innovative technologies that guarantee better and greener living.

A final benefit of such infrastructure, whether sustainable or smart, is that it allows for the collection of key data.

Through the hardware that’s positioned in some projects and that will also be available in the first smart homes to be launched in 2020, the HDB will learn a lot more about tenant behaviours. Based on such information, additional smart solutions can be sought for community areas and the infrastructure that’s currently in place can be fine-tuned for future HDB developments.

[homeguidedesignsg]

Research of market dynamics since the beginning of 2019 suggests that now may be the right time to acquire an HDB resale flat.

In March 2019, the rental volume of HDB resale flats increased by 26.1 per cent because prices have been going down. This is the highest volume since August 2018.

Property transaction trends are also quite indicative. The total number of HDB resale transactions reached 1,657 flats. In comparison, the number of resale flats sold in February was 1,314. Some experts attribute the increase to seasonal reasons but according to others, additional factors are to be taken in consideration.

Factors Making the Time Right for HDB Resale Flat Purchases

The increase on a monthly basis is way too significant to be attributed to season issues alone. According to Singapore real estate professionals, a few other key factors contribute to the favourable climate at the time being.

As per an official announcement, only one executive condominium (EC) launch will take place in 2019. At the same time, many HDB flats will be reaching their minimum occupancy period (MOP) during the year. This means that the number of resale options will keep on increasing.

In addition, the HDB resale prices have been going down for five consecutive years already. The increased number of available flats obviously affects market dynamics. Hence, the volume of transactions is anticipated to continue growing because of the ideal conditions for acquisition right now.

Resale is currently shaping up as a more attractive option than EC due to financing possibilities, as well.

There has been a reduction in the Singaporean official loan to value ratio (LTV). Bank loans are set to 75 per cent of the property value. HDB loans, however, are a viable alternative. An HDB loan comes with a much more favourable LTV of 90 per cent. Hence, the availability of funds for property acquisition is going to make numerous Singaporeans choose HDB resale flats.

To sum it up, HDB resale flats are affordable. At the same time, there’s a lot of availability. It gives property seekers a chance to find the exact apartment of their dreams, prompting many of them to move forward with this major decision.

March 2019 Marks a Major Trend

As already mentioned, March 2019 marks the highest jump in HDB flat resale volumes over the past eight months.

The number is still lower than the number of transactions carried out in March 2018 – 1,897 flats. The decrease on an annual basis is 12.7 per cent.

March is typically a strong month for resale transactions. In March 2018, the resale volume increased 58.7 per cent on a monthly basis. In March 2017, the increase was even more significant – 75.4 per cent.

Resale transactions are anticipated to pick up even further in the months to come, The Straits Times report suggests. Resale prices have also increased slightly – 0.2 per cent – in March. This is another trend in evolution that could continue shaping up the market in the months until the end of 2019.

The increase in prices, however, isn’t that significant. Prices are still 13.7 per cent lower than the peak reached in April 2013. Those numbers once again confirm the fact that the resale property market is quite favourable, making purchases cost-efficient and potentially profitable in the future.

Older flats are currently most affordable, which is nothing but natural.

Final Verdict: Buy Now?

If you’re looking to acquire an HDB resale flat, the time is now.

What property should be investing in? The answer depends entirely on your goals.

Research shows that over a 15-year period, four-room flats have appreciated the most. The price increase is 78 per cent and the current average price of a four-room flat is 425,275 dollars (in comparison to an average of 238,300 dollars in 2004).

Three-room flats appreciated by 69 per cent and five room flats appreciated the least – 68.5 per cent. While there are some regional differences, the overall trend remains valid throughout Singapore.

Apart from the investment potential, however, you should also be paying attention to other key essentials. Your individual needs, the current state of the HDB flat and the cost needed to renovate your new home , your interior design needs,  location and the availability of infrastructure/nearby amenities will also determine whether one HDB resale flat or the other is the right choice for you and your family.

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Leasehold apartment tenures are very popular in Singapore but some people worry about their apartment losing value as the years go by. Properties that come with a 99-year leasehold tend to depreciate towards the end of the lease.

Authorities have come forward with a statement that aims to clarify the situation. According to Finance Minister Heng Swee Keat, HDB apartments will retain their value even when the owner becomes older.

HDB Flats Owned by Seniors Still Have Value

In a statement published on the official Singapore Government website, Minister Heng provided an example aimed at illustrating the manner in which the value of leasehold flats changes through the decades.

If a person buys a new 99-year leasehold HDB apartment when they’re 25, the flat will still have about 30 years on the lease by the time the owner turns 85. The age is chosen as it is the current life expectancy in Singapore.

There is still a lot of value in the flat that still has 30 years on the lease at that moment, Minister Heng concluded during an annual real estate conference.

In addition, Minister Heng responded to questions about HDB apartment dwellers being more of renters than owners. There is some speculation that leasehold arrangements do not give owners the same rights as in the case of a private property sale. Minister Heng negated these claims, saying it’s about time for the misguided beliefs to end their existence.

Previously, National Development Minister Lawrence Wong tried to shed some light on the same issue.

According to Wong, many private properties also come with a 99-year leasehold period. In the case of such apartments, however, nobody is making the claim that the owners are lacking the rights and responsibilities that come with flat ownership in Singapore.

HDB lessees have all the rights over the flat that private property owners have, Wong said. The property is great for a home, it can be transacted or left to one’s children. According to Minister Wong, HDB flat owners actually additional privileges stemming from the fact that various government programmes and funding options exist.

Ownership rights are intact over the entire lease period and the rights of the HDB flat lessees are protected by law.

How Do HDB Flats Depreciate?

The example mentioned above is based on the assumption that a person aged 25 is capable of buying a brand new apartment. If the HDB flat isn’t brand new when the leasehold arrangement comes into effect, the depreciation is going to occur more rapidly.

It has also become clear that flats coming to the end of their 99-year leasehold will be returned to the government without a compensation for the owner. This is one of the reasons why many people in Singapore worry about older leaseholds and how these are going to be handled in the future.

It’s up to the individual owner to determine what their strategy is going to be in terms of keeping an HDB flat, passing it on to kids or selling it with a certain number of years left on the lease.

In addition, the lease terms and conditions are not the only factor that will affect the price of the apartment and whether it’s going to appreciate or depreciate.

Location is one of the primary elements to consider. Attractive locations can retain the value of older properties for a much longer period of time than town and developments that are not deemed to be the most prominent at the time being.

The size of the apartment, the way in which it has been maintained and the upgrades carried out by the owner can also contribute to asset appreciation. Thus, anyone interested in selling a leasehold HDB flat will have to be strategic about living in the place and renovating it to accomplish a bit of modernisation.

Attempting to sell an HDB flat that has less than 30 years on the lease can be difficult, especially if you want to get a certain higher amount for it. The theory mentioned by government officials is easy to understand and it makes sense. Still, you need to have a good idea about how you’re going to handle real estate assets way before they reach the age that will change significantly the status of the property.

A Few Important Numbers

It’s also a good idea to keep track of market dynamics if you’re interested in selling leasehold HDB property and making a profit.

According to a Channel News Asia report, HDB flats that are 30 years or older depreciate less than private non-landed housing.

A study carried out by the National University of Singapore also suggests that a major difference in the price of freehold and leasehold properties appear only after 10 years. There are several other factors that contribute to depreciation rates. These factors include building age, property tenure and size.

To study depreciation, researchers used resale figures for both property types in the period from 1997 to 2017. Control measures for factors unrelated to the age of the property were also accounted for. The researchers reached a conclusion that depreciation rates for all studied property types were similar within the first 10 years. After that, HDB flats depreciated one per cent faster than private non-landed housing.

When the apartments reached an age of 21 years, the depreciation rate for HDB flats was set at three per cent. For private properties, the depreciation reached 10 per cent.

As you can see, the accounts and data reports can be confusing. Numerous factors are examined and all of these, including the condition of the Singaporean economy at the respective moment, can impact apartment prices and depreciation.

If you are interested in selling an older flat, you will need to do a thorough assessment of the factors you can control and modify to increase its value.

Consulting professionals will give you a better idea about the types of investment that make sense and that can give you a good return.

Home Guide has extensive residential real estate renovation and interior design experience. Contact us today to learn more about the HDB property renovation and maintenance guidelines, as well as about the additional strategies you can rely on to modernise your flat and sell it at a better price.

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The Housing and Development Board (HDB) in Singapore announced its intention to make older public housing towns liveable through a second round of upgrades and renovations that will start in 2020.

The Home Improvement Programme

The Home Improvement Programme (HIP) helps for the resolution of some common maintenance problems occurring in older HDB flats. It was rolled out in 2007 to fix issues like spalling concrete and deteriorated waste pipes.

As per the programme’s conditions, HDB flats built until 1986 that haven’t undergone upgrades via the Main Upgrading Programme (MUP) are eligible for HIP enrolment. There are three main components the programme consists of – essential, optional and Enhancement for Active Seniors (EASE).

The government provides full funding for essential improvements under HIP. In addition, large subsidies are available for optional renovations.

In the case of EASE upgrades, the cost is estimated at approximately 2,500 dollars. The government subsidy covers up to 95 per cent of the cost. This means that depending on the subsidy amount, residents will only have to pay between 125 and 312 dollars for the entire project.

In March 2019, HDB announced an extension of the HIP programme to make more flats eligible for inclusion.

As per the new conditions, the programme subsidies and financial assistance will be extended to older flats constructed from 1987 to 1997. Minister of National Development Lawrence Wong said that town councils will be given the option to nominate their own flats later on in 2019.

Terms and Conditions of the Extension

Through the extension of the HIP programme, the government will provide funding for the upgrades in 230,000 additional old flats. In August 2018, HIP improvements were announced for 242,000 out of 320,000 eligible flats throughout Singapore. The upgrade and renovation works have already been finalised in the case of 122,000 apartments.

Once HIP and MUP upgrades are completed, 450,000 apartments would have gone through a home renovation process that is subsidised by the government.

According to the official announcement, it is difficult to determine when the upgrade and renovation works are going to end for the new flats added to the HIP programme under the extension. The availability of funds will be determining for the renovation speed, Minister Wong said.

The extension of the HIP programme will cost Singapore authorities more than four billion dollars. According to Minister Wong, however, the allocation of the sum to old property upgrades is entirely worthy.

Apart from extending the scope of HIP, the government has announced a few other legislative changes that favour the owners of older HDB apartments.

The authorities will provide additional updates about HIP II – a round of upgrades for flats ranging from 60 to 70 years in age. In addition, announcements will be made about the Voluntary Early Redevelopment Scheme (VERS) programme. VERS allows the owners of older HDB flats to sell their property back to the government.

Under VERS, owners can vote on selling the ageing flats back to the government for redevelopment purposes. Apartments eligible for inclusion in VERS need to have reached their 70-year age mark. The aim of the programme is to address the significant reduction in price that flats go through when they reach the final years of a 99-year leasehold.

Original HIP Timeframe Was Too Limiting

In an official statement, Minister Wong said that various flats in Singapore that were showing signs of ageing have not been included in the original renovation programme.

Some of these apartments are located in Tampines, Yishun and Jurong. They were built both before and after 1986 and even residents of some of the younger flats were hoping for upgrades. At the same time, they did not meet the original and quite restrictive HIP programme criteria.

According to Minster Wong, the completion of the renovations will increase the lifespan of the HDB flats by anywhere between 30 and 40 years. By that point in time, they will already be 60 to 70-year-old. Hence, additional work will be required to overcome typical structural and construction issues stemming from decades-long operations.

When this happens, the apartments will qualify for the HIP II programme, giving the owners a chance to qualify for governmental funding once again.

This means that every HDB flat will be upgraded twice during its lease.

The first renovation will be carried out under HIP or MUP. The second round of upgrades will occur at the time the property reaches an age of 60 to 70 years. This renovation will be carried out under HIP II. Both of the programmes aim to help HDB residential property retain its value through the years.

These announcements give HDB flat owners some certainty about their assets. In the past, ageing HDB apartments experienced massive depreciation. Through the introduction of HIP and VERS, the difference between an old HDB flat reaching the end of the lease period and a privately held apartment is becoming less distinctive.

Since the renovation schemes are anticipated to continue being operational in the long run, first-time HDB property buyers right now can have some clarity about long-term prospects in the future.

Do You Own an Older HDB Flat?

If you own an older HDB flat, you should definitely look into the chances for getting a government renovation subsidy.

The government covers a large amount of the sum required for essential and optional renovations. You may want to check the website of HDB out to get a better idea of the HIP terms and conditions.

Home Guide is an interior design company in Singapore that can also shed some light on what’s covered and what you’ll need to address on your own.

Home Guide is an HDB-licensed team of interior design professionals.

We understand the best residential practices and the HDB guidelines for home maintenance and renovation. Our projects cover the spectrum – from modern and minimalist to rustic and ornate. Don’t hesitate to contact us today and discover the possibilities for old HDB flat upgrades.

[homeguidedesignsg]

The Singapore Housing and Development Board (HDB) released its residential market estimates for the first quarter of 2019. According to the report, the resale price index (RPI) has declined by 0.3 per cent on a quarterly basis – a trend that’s been observed for some time already.

RPI Changes in the Beginning of 2019

RPI provides general information about price movements in the Singapore resale public housing market.

As per the official release, the RPI has seen a slight drop but more detailed information on the movement and public housing developments will be released on April 26, 2019.

Currently, the RPI stands at 131.0. The downward trend has been consistent over the past two quarters. In the third quarter of 2018, prices went down 0.1 per cent. A slight decrease of 0.2 per cent was also registered over the final quarter of 2018.

Still, the HDB resale market is in a good condition and it maintains a degree of stability. Things were much more volatile during the same period of 2018. In the first quarter of 2018, the decline was set at 0.8 per cent.

Prices have decreased by approximately two per cent over the past two years, Singapore property experts state. Still, the decline is slowing down and the resale residential market is demonstrating signs of stabilisation at the time being.

Market Supply and Demand Dynamics

The overall demand for resale transactions in 2018 reached 23,099.

There will be new supply and demand dynamics that will affect the availability of homes for sale in Singapore and their prices in 2019.

One of the most prominent trends is the fact that 30,000 HDB flats will reach their minimum occupation period (MOP) in 2019. The maturity of MOP flats will add to the supply side and public housing prices will not experience much of a change in 2019 (a slight increase of approximately one per cent is anticipated), Chanel News Asia reported.

To add to the market dynamics, the HDB has made an announcement about the availability of new BTO flats that will be released in 2019.

As per the HDB announcement, the offering will consist of approximately 3,400 new BTO apartments in Whampoa, Kallang, Tengah and Woodlands. The offering will become available in May, 2019. There will also be a concurrent sale of balance flats exercise.

HDB has announced that it plans to launch a total of 15,000 new flats for sale in 2019. In addition, HDB announced shorter waiting periods and regulatory changes that will enhance the application process.

Monthly HDB Flat Dynamics

Apart from the quarterly information, there has also been some data about resale flat market dynamics on a monthly basis since the start of the year.

In January, there was an increase in resale transactions. The high was followed by a downward trend in February. There were 1,313 resale transactions – a decrease of 15.8 per cent on a monthly basis. The good news, however, is that on an annual basis, there has been an increase of 9.9 per cent in comparison to the volume of transactions for February 2018.

HDB resale flat prices remained unchanged from January to February. In comparison to the February 2018 prices, there is a decline of 0.5 per cent. Resale flat prices reached an absolute peak in April 2013. The drop since then is set at 13.9 per cent.

According to real estate professionals, resale HDB flat prices have gone down more rapidly than the prices of private homes for sale. This is one of the reasons why the gap between the two types of residential property has become even wider.

The supply of flats reaching their five-year occupational period also increased. This fact cannot be underestimated when it comes to high supply and a reduction in the HDB resale flat prices.

The condition of the flat and its size are two of the factors deemed determining for the resale price. Analysis suggests that newer flats in attractive locations throughout Singapore command the highest prices. Buyers are more willing to spend a larger amount on a smaller, well-maintained flat. Larger apartments are currently less in demand and more time is required to close a deal on this type of resale apartment.

Buyers are increasingly becoming more cautious. They’re not in a hurry to purchase and they draw a detailed comparison between the available options. Prices are easing and the supply is high. The competition for the same flat is reduced, which means that buyers don’t have to rush and close the deal as soon as possible.

A Long-Term Mindset Change?

Older resale flats are the ones that currently spend the most time on the market.

Real estate professionals, however, anticipate a change in mindset that will affect the fate of such HDB resale flats in the future.

The new VERS and HIP programs aim to increase the attractiveness of those residential properties. While these have not produced an immediate effect on resale prices, the impact is anticipated to become much more pronounced as time goes by.

As additional policies continue being implemented, the mindset towards older HDB flats will also likely undergo a massive shift.

If you own an older HDB flat, you may be unhappy about the current market dynamics and the price reductions.

There are things you can do to increase the attractiveness of the property and contribute to its intrinsic value.

Such improvements can be carried out without breaking the bank. At the same time, they will make it possible to sell the apartment at a higher price.

Home Guide’s experienced Singapore interior design team can guide you through the process of home interior design and renovation and freshening up an older flat. We will examine the condition of the apartment and pinpoint the renovations that are affordable and that will yield the highest return on investment.

Contact Home Guide today to start enhancing your older flat and giving it a modern facelift. As the market trends favour buyers right now, you will need to work hard in order to finalise a deal that will make you happy and give you exactly what your resale flat is worth.

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Facilitated procedures will give those looking for built-to-order (BTO) flats faster results from the application procedure.

The Singapore Housing and Development Board (HDB) announced that starting May 2019, BTO flat applicants will get results of their ballot in three instead of six weeks. The reduced waiting time has been established as one of the Housing and Development Ministry priorities from 2018.

Here’s an overview of the latest announcements, procedure facilitations and additional HDB news.

Shorter and More Effective Procedures

There have long been attempts to improve the BTO application process. Balloting time is one of the biggest challenges that the HDB has been trying to address.

Apart from reducing the waiting period from six to three weeks, HDB will also begin making earlier announcements about upcoming residential real estate sales.

As per the official HDB announcement, news about upcoming BTO sales will start being circulated six months in advance instead of the current three months. This is yet another change that will be introduced in May 2019.

Thus in May 2019, HDB will announce the list of upcoming BTO sale sites for both August (following the old regulations) and November (on the basis of the new six-month announcement term).

Minister of National Development Lawrence Wong said that for first-time couples, the purchase of a BTO flat is a major decision that will often be affected by the location of the residential property. Having preliminary information about the location of a future project gives these first-time buyers the time to research and make a sound decision for the future.

Buyers want more information to plan ahead, Wong said, which is why authorities responded with the legislative changes. While the HDB has been careful about revealing too much because of the prospects of unexpected changes, such a regulatory measure was required to address public demand.

Additional HDB News and Developments

During a briefing, Minister Wong provided some additional information about changes in the way the HDB works and makes BTO flats available.

The number of BTO flats that come with a shorter waiting period of two to three years will be doubled to 2,000 in 2019. Factors like site availability determine and limit the number of such flats that the HDB could offer. Still, efforts are being made to gradually move the number up in the future.

If home buyers have more urgent needs and cannot afford the wait, they can always opt for an alternative HDB apartment acquisition model like the sale of balance flats (SBF) or the re-offer balance flats (ROF) schemes, Wong said.

An open ROF pool is available throughout the year and buyers can make their open booking from there. The opportunity opens in June and more details about the parameters of the application process will be announced in the near future.

Upcoming Sales Launches and Emerging Trends

An upcoming BTO sales launch will target three primary towns and estates in May 2019.

The official HDB website has listed the launch of new BTO flats in Tengah, Woodlands and Kallang/Whampoa.

In Tengah, the BTO options will range from two to five-room apartments. The total number is set at 2,180. The Woodlands apartments are 720 and they also range from the smallest two-room to five-room flats. Finally, 580 new BTO flats will become available in Kallang/Whampoa and these will be two to four-room apartments.

The demand for public housing in Singapore is hitting a high after a slowdown experienced for some years. The resale market is the one seen as most dynamic right now. It ended on a high note in 2018 and according to official HDB information, there were 23,099 transactions during the year.

Government efforts to scale down the number of BTO flats launched each year could have contributed to these resale market dynamics. The number of displaced en-bloc owners has also increased, which contributed to upward market pressure and an increase in the demand.

According to experts, emerging trends in 2019 could start reshaping the Singapore residential real estate market.

The resale market will see a bumper supply of BTO apartments reaching their five-year minimum occupation period. According to HDB estimates, 27,000 BTO flats and 3.500 design, build and sell scheme (DBSS) flats could reach their minimum occupation period this year, ensuring a new wave of eligible sellers.

In the period until 2021, 50,000 additional flats will reach their minimum occupation period. The number is much higher than a total of 9,000 flats for 2013/2014.

A shift in housing demand will inevitably come as a result of the upcoming massive supply of eligible flats. Prices are also to be affected and residential property may become more affordable to acquire once the wave of resales begins,

Buying interest will be strengthened in certain developments as a result of the new market dynamics. Real estate experts predict stronger buyer demand in Hougang, Sengkang, Punggol, Pasir Ris and Tampines.

The number of apartments reaching the minimum occupational period will once again be determining. In Sengkang and Punggol alone, the number of such apartments will exceed 10,000. In addition, both of the towns are recognised for beautiful landscaping and a lot of greenery, contributing to further buyer interest.

Currently, the announcement of new BTO flats in Sengkang and Punggol has not led to a reduction in property prices. These are the only two non-mature developments to record price growth for four and five-room flats over 2018.

To sum it up, the demand for HDB resale flats will continue being resilient in 2019. Certain segments may be affected by price weaknesses but overall, sellers will benefit from stability and high demand.

If you’re considering the sale of a flat, the time may be now to get started. If the minimum occupation period is nearing its end, you should definitely begin researching improvement options that will enable you to attract the right buyer and the right price.

An interior design company in Singapore can help you optimise the space and give it a more contemporary ambiance.

Home Guide has extensive residential interior design experience. We’ve worked on numerous projects and we’re comfortable with all styles – from minimalist to ornate and rustic. Contact us today to begin modernising an older living space that you’d like to sell in the future.